Step 1
Gather data for a specific period of analysis. Most payroll systems should enable you to run a report of actual payroll expenditures for the past fiscal year or the previous 12 months.
Step 2
Use the previous year's data to get a ballpark idea of the total amount of miscellaneous line items and benefits, such as health insurance credits, mileage claims, overtime, allowances, reimbursements and premiums.
Step 3
You must pay your employees through a payroll system, but the type of system you use depends on your payroll needs. The size of your company and your knowledge of payroll tasks have a lot to do with whether you choose an automated or manual system or whether you turn the job over to a payroll service provider.
Step 4
Step 5
Step 6